GOVERNMENT AFFAIRS
Te Industry Eye on State & Local Issues
Housing Issues on the National Front
By MAGGIE YANCEY, GHBA Government Affairs and Communications Specialist
You Have a Voice with GAC!
If you have questions about this article or would like to get involved on the Government Affairs Committee, call (281) 970-8970, ext. 142 or email Maggie at
myancey@ghba.org.
mortgages. These rules are to assist borrowers with little or no equity in their homes in order to refinance and avoid foreclosure. Many of these borrowers are stuck with 6 or 7 percent mortgage rates. The Federal Housing Finance Agency (FHFA) plans to remove caps that had allowed homeowners to refinance only if they owed up to 25 percent more than their homes are worth.
T
The agency will also “loosen” terms of the Home Affordable Refinance Program (HARP), which assists borrowers who have been making mortgage payments on time but can’t refinance loans because their home values have dropped. Borrowers may qualify if they have made their last six mortgage payments and have proof of income. There will also be a reduction on certain Fannie Mae and Freddie Mac loan fees.
The refinancing program is being extended until the end of 2013. It was originally scheduled to end in June 2012.
While the President’s intention may be to spur economic growth, borrowers will get the best deal by refinancing into a shorter-term mortgage. Many will then be able to pay off their loan earlier, but they will not have more money in their pocket from the deal.
Call to Action
On September 30, 2011, the conforming loan limits for Fannie Mae, Freddie Mac and Federal Housing Administration (FHA) were lowered. The disruption caused by this lowering of the current loan limits is
8
his past month, President Obama announced plans to address the housing bust by promoting new rules for federally guaranteed
damaging the already fragile housing market and impeding the economic recovery of our nation.
The housing finance system is under a cloud of uncertainty. The federal government, through the GSEs and the FHA, is currently accounting for nearly all mortgage credit flowing to home buyers and rental properties. The lowered loan limits are only further restricting overall mortgage liquidity in the marketplace and placing further downward pressure on home prices.
Talking Points:
„ Urge your senators to support an immediate restoration of the higher loan limits for Fannie Mae, Freddie Mac and the FHA;
„ The drop in mortgage loan limits that occurred on September 30 is restricting overall mortgage liquidity in major markets all across the country;
„ This is not the time to reduce housing demand and exacerbate the current housing downturn.
Way to Act:
Call your senators at (866) 924-NAHB (6242). If you have any questions or feedback on this issue, please email
BuilderLink@nahb.org.
State News
Speaker Straus Announces “Interim Charges” for Texas House
Because of the limited time that the legislature is in session, in-depth studies of important issues often are conducted by committees during interims. Generally, the lieutenant governor specifies interim charges for senate committees, and the speaker of the house specifies interim charges for house committees. Most interim studies result in a report to the senate or a report to the house
NOVEMBER 2011 | HOUSTON BUILDER | GREATER HOUSTON BUILDERS ASSOCIATION – BUILDING A BETTER FUTURE
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48